Netflix announced that it will be retiring the ad-free basic subscription for new and returning members in countries that currently offer ad-supported plans like Canada and the U.K.
The ad-free basic subscription used to cost $11.99 per month.
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Netflix Offers Other Ad-Supported Plans
Netflix subscribers from Canada and the U.K. will be left with the option of paying $15.49 per month as the cheapest ad-free plan. On the other hand, users who opt for the ad-supported basic plan will pay $6.99 per month.
In the earnings report, Netflix revealed that 40% of the sign-ups are under the ads plan. Moreover, there had been a nearly 70% increase in quarter over quarter in ads membership.
"We're looking to retire our Basic plan in some of our ads countries, starting with Canada and the UK in Q2 and taking it from there," the report concluded. Previously, Netflix had stopped new sign-ups for the basic plan in Canada last year which eventually rolled out to the U.S. and the U.K.
Netflix Pushes Revenue Growth With Advertising
The streaming giant also reported the success of the ad-tier plans which currently have 23 million month active users around the 12 countries that it is offered.
However, Co-CEO Greg Peters acknowledged that it would take years before the advertising has a significant impact on Netflix's general business. "But it's fair to say there's a lot of room for growth in all the markets we're in," he added.
On the other hand, there are also hints price hike in the future as Netflix continues to improve its service.
"We'll occasionally ask our members to pay a little extra to reflect those improvements," the report stated.
Netflix also revealed the 12.5% year-over-year revenue increase along with the 13 million subscriber surge. Regardless, the company is firm on making ads a "more substantial revenue stream" beyond 2025.
Related Article : Netflix Records 23 Million Monthly Users on Ad Tier Plan
